Question
In this question, you can pretend you are one of Lyndas children and there is no fiduciary relationship. Let us assume Lynda will buy in
In this question, you can pretend you are one of Lyndas children and there is no fiduciary relationship. Let us assume Lynda will buy in one of the three immediate fixed income annuities and then bequeath in her will the annuity to her children the children will inherit the annuity when Lynda passes away. Lynda asks the children to select the years-certain annuity that will maximize the childrens wealth (not Lyndas wealth). There is a catch where if the children select the wrong annuity, Lynda will bequeath the annuity to their Uncle Bob. Which immediate fixed income annuity will maximize the childrens wealth? Explain your answer.
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